In case you’re serious; in most places in the world, cars are a luxury and taxed as such. In island nation in particular, imports are also very expensive in general and import taxes are most of their revenues.

TLDR: tax the rich, poor don’t need cars in sane cities.

They want to limit the number of cars in use in the country. I believe they limit it to around 1M. The price of the tax actually increases/decreases depending on demand to keep the total number around 1M.

Because it’s a small island country and there’s no need for cars. Public transit there is intense. Automated light rail between communities connect to subways that connect to everything. Their buses are great too.